http://money.cnn.com/2005/09/23/Auto...ives/index.htm
Hybrids: Don't buy the hype
Sure, hybrids save gas but they won't save you money. There are smarter ways to go.
September 26, 2005
By Peter Valdes-Dapena, CNN/Money staff writer
NEW YORK (CNN/Money) - Toyota is now measuring "time on the lot" for the Toyota Prius in hours, not days. The average Prius goes unsold for only about 20 hours after it hits a Toyota dealer's lot, according to a recent report.
With gasoline prices now around $3 a gallon, you might think it makes a lot of sense that hybrid cars are hot sellers.
Actually, it doesn't -- at least not a lot of financial sense.
They may make a social statement you're interested in, but if you want to save money because of rising gas prices, you're heading down the wrong road, at least for now.
Some simple calculations by our partners at Edmunds.com revealed the following:
A hybrid Honda Accord costs about $3,800 more than the comparable non-hybrid version, including purchase, maintenance and insurance costs. Over five years, assuming 15,000 miles of driving per year, you'll make up that cost in gasoline money if the price of gas goes up immediately to $9.20 a gallon and averages that for the whole period.
For the Ford Escape hybrid, the difference is less stark. To make up the difference over five years between the Escape hybrid and a Ford Escape XLT, gas prices would have to average $5.60 after you purchase the vehicle.
The Prius itself, however, could be an exception. There is no such thing as a non-hybrid Prius, making a direct comparison impossible. Compared to a Toyota Camry, a car with similar interior space which costs about $100 more over five years, the Prius driver could actually save a small amount of money.
There is a tax deduction of $2,000 available for purchasing a hybrid vehicle, but that translates to a one-time tax savings of less than $500 for most buyers. That's nice, but it's not enough to make much of a difference in the long run.
